[WSBAPT] Question about capital gains tax in probate/Referral request

Fri Jul 28 11:15:17 PDT 2023

Nice explanation

MARTIN SILVER, LLM TAXATION, NYU

ATTORNEY AT LAW

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Philip N. Jones
Sent: Friday, July 28, 2023 9:49 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Question about capital gains tax in probate/Referral
request

As you hint, the estate received a new basis step-up, so the post-mortem
capital gains should be very small.  Since the market is pretty flat right
now, there might not be any.  In a market like this, many practitioners
would use the sale price as the DOD value (basis), even though seven months
have gone by.  And any expenses of sale need to be used to reduce the gain,
and not used as administration expenses (not many people know this).  So I
don't think you have much to worry about.  And your non-client does not have
much to worry about.  (But if the PR is not a client, why are you giving her
advice?  Since she has an accountant, she should ask the accountant.)

(For those of you who purchased my fiduciary income tax book, see chapter 13
on capital gains and losses.)

Phil Jones

Philip N. Jones

Duffy Kekel LLP

900 S.W. Fifth Ave. Suite 2500

Portland, OR 97204

pjones at duffykekel.com <mailto:pjones at duffykekel.com> 

(503) 226-1371 - office

(503) 853-1482 - cell

(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com>
<wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Candace Wilkerson
Sent: Friday, July 28, 2023 8:39 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com
<mailto:wsbapt at lists.wsbarppt.com> >
Subject: [WSBAPT] Question about capital gains tax in probate/Referral
request

Hi all,

I do a lot of probate cases, but am not an expert on capital gains.  I
recently received a question from a PC (who is doing a DIY probate in King
County) about capital gains liability for an estate when the estate house
gets sold in Washington State.  The Decedent had lived there for 58 years(!)
and he only died 7 months ago.  The personal representative (who is not a
client) asked me to give her an idea of how much the estate would owe in
capital gains taxes, and how much she should hold back from distributions to
the will beneficiaries in case the amount the estate pays for capital gains
taxes isn't correct.  

I know it depends on the amount of appreciation, if any, in the property
value after Decedent's death, whether any of the beneficiaries has lived on
the property for the last 3 of 5 years, etc.  No transfer of title has been
made to any will beneficiary; the property sale is being done by the PR.  I
told her all of this, as well as to make sure the tax accountant she's using
assists her in determining the correct payment for capital gains.  

If she comes back to me with more questions, is there anyone willing to do a
(paid) consult with her to discuss her questions?  I don't want to give her
incorrect information.  

And, for this matter, if anything I've written is incorrect I'd appreciate a
correction.

Thanks!

Candace Wilkerson

*Candace is available to respond to emails and phone calls between the hours
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